Aramco has inked an $11bn agreement with a consortium of international investors, concerning its Jafurah gas processing facilities in Saudi Arabia.
The consortium is headed by funds managed by Global Infrastructure Partners (GIP), which in turn is part of BlackRock.
This deal involves leasing and subsequently leasing back these midstream assets to Aramco for a 20-year period.
The newly formed subsidiary, Jafurah Midstream Gas Company (JMGC), will handle the development and usage rights for these facilities.
In exchange, Aramco will pay a tariff to JMGC, retaining exclusive rights to receive, process, and treat raw gas from Jafurah. Aramco will maintain a 51% majority share in JMGC, while GIP and affiliated investors hold the remaining 49%.
The Jafurah Gas Field is the largest non-associated gas development in Saudi Arabia, containing significant reserves of raw gas and crude oil. It plays a crucial role in Aramco’s strategy to boost its gas production capacity by 60% from 2021 to 2030.
Aramco’s transaction does not restrict its production volumes and is anticipated to conclude after customary closing conditions are met.
According to Aramco, investor interest in the Jafurah development was substantial, drawing participation from notable institutional investors across Asia and the Middle East. This venture aligns with Aramco’s asset optimisation goals and aims to capture additional value from the Jafurah field.
Aramco president and CEO Amin Nasser said: “Jafurah is a cornerstone of our ambitious gas expansion programme, and the GIP-led consortium’s participation as investors in a key component of our unconventional gas operations demonstrates the attractive value proposition of the project.
“This foreign direct investment into the Kingdom also highlights the appeal of Aramco’s long-term strategy to the international investment community. As Jafurah prepares to start phase one production this year, development of subsequent phases is well on track.”
The transaction builds on previous collaborations between Aramco and BlackRock, such as a minority investment in the Aramco Gas Pipelines in 2022.
GIP chairman and CEO Bayo Ogunlesi said: “We are pleased to deepen our partnership with Aramco with our investment in Saudi Arabia’s natural gas infrastructure, a key pillar of global natural gas markets.”
Jafurah’s development is part of a significant project aiming to contribute to the energy transition. The field covers approximately 17,000km2 and is anticipated to provide key feedstocks for the downstream petrochemical industry while supporting Saudi Arabia’s energy transition aspirations.
Once completed, the Jafurah facility aims to ensure reliable delivery of natural gas and associated products through a dedicated surface network. This infrastructure includes a gas processing plant, a natural gas liquids (NGL) fractionation plant, a gas-compression system, and roughly 1,500km of main transfer pipelines, flow lines, and gas-gathering pipelines.
